Market Overview

Citigroup Expands Big Data Coverage, Names Alteryx, Tableau Software, Talend As Top Picks

Citigroup Expands Big Data Coverage, Names Alteryx, Tableau Software, Talend As Top Picks
Benzinga's Top Upgrades, Downgrades For December 7, 2018
51 Biggest Movers From Yesterday
88 Biggest Movers From Yesterday
70 Stocks Moving In Wednesday's Mid-Day Session
Hotel Reservation Startup Adds Grab To Its $1B Round (Seeking Alpha)

Citigroup reshuffled its coverage of big data and analytics software stocks, initiating four stocks — including two new top picks — and updating their views on another four.

The Analyst 

Analyst Tyler Radke assumed coverage of the group and named Alteryx Inc (NYSE: AYX), Tableau Software Inc (NYSE: DATA) and Talend SA ADR (NASDAQ: TLND) as top picks.

The Thesis 

No. 1 on the list is Alteryx, given its “best-in-class” customer expansion rates and new artificial intelligence and machine learning products, Radke said. Customer expansion is expected to exceed 130 percent, driving top-line growth of more than 40 percent, the analyst said. (See Radke's track record here.) 

The risk to Alteryx tied to the release of Tableau Prep is overblown, presenting an opportunity to buy, Radke said. Short interest in the stock is around 23 percent of float compared to only 6 percent in January.

For its part, Tableau’s transition toward its subscription model is expected to be in “full swing” in fiscal 2019, driving a new acceleration in revenue, margins and free cash flow, Radke said. 

“Recent fieldwork gives us incremental confidence in continued strong growth as organizations standardize on Tableau,” the analyst said, adding that his estimates are “well above the Street.”

Talend, although not the biggest growth opportunity, “checked the most boxes” in Radke’s review and is seen as the least risky of the three.

“We think cloud industry tailwinds only continue to strengthen where Talend is well-positioned.”

The Ratings

  • Alteryx Inc (NYSE: AYX) initiated at Buy, $57 price target.
  • Cloudera Inc (NYSE: CLDR) reiterated at Buy, $21 price target.
  • Hortonworks Inc (NASDAQ: HDP) initiated at Buy, $27 price target.
  • MicroStrategy Incorporated (NASDAQ: MSTR) reiterated at Neutral, $144 price target.
  • Mongodb Inc (NASDAQ: MDB) initiated at Neutral, $56 price target.
  • Tableau Software Inc (NYSE: DATA) reiterated at Buy, price target raised from $107 to $123.
  • Talend SA ADR (NASDAQ: TLND) upgraded from Neutral to Buy, price target raised from $50 to $72.
  • Teradata Corporation (NYSE: TDC) initiated at Neutral, $42 price target.

Related Links:

3 Reasons Why Oppenheimer Is Bullish On Alteryx

Micron's Latest Earnings Call Was A 'Body Blow To The Bears': Analysts Weigh In

Latest Ratings for AYX

Dec 2018WedbushInitiates Coverage OnOutperform
Nov 2018Raymond JamesMaintainsOutperformOutperform
Nov 2018KeyBancMaintainsOverweightOverweight

View More Analyst Ratings for AYX
View the Latest Analyst Ratings

Posted-In: Citigroup Tyler RadkeAnalyst Color Upgrades Price Target Initiation Reiteration Analyst Ratings Best of Benzinga


Related Articles (CLDR + AYX)

View Comments and Join the Discussion!

Latest Ratings

TVPTImperial CapitalDowngrades15.8
ACORGoldman SachsDowngrades10.0
BCOVB. Riley FBRUpgrades12.0
CAMPFirst AnalysisDowngrades22.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

The Pullback In Twilio Creates A 'Favorable Entry Point,' Argus Says In Upgrade

A Protective ETF Play On International Dividend Growth